Lead managed by SBI Capital Markets and three others, the issue is scheduled to open on October 25 and close on November 5. According to the draft prospectus, of the 12.5 crore shares on offer, 11.5 crore shares are for the public, the balance being offered to employees and directors of the bank. The present issue is not underwritten.

The Manipal-based Syndicate Bank's maiden public offer is aimed at augmenting its capital base to meet its future capital adequacy requirements and also to augment its long-term resources. At present, the bank's capital adequacy ratio is at 9.57 per cent against the RBI-stipulated 8 per cent.

And at the end of fiscal 1999, its non-performing assets were at 3.93 percent of its net advances, which is at the lower side by the industry standards. Currently, the bank's cost of deposits is at 7.69 per cent.

Post-issue, the government holding in the bank's Rs 471.97-crore equity will be down to 73.52 per cent from 100 per cent level. This is the first public issue from a public sector bank in the last one year. Post-offer, the shares are to be listed at the Mumbai, Mangalore, Bangalore and the National stocks exchanges.

At the end of fiscal 1999, Syndicate Bank had 1,670 branches spread all over the country with 64 per cent of its business coming from the automated branches. During the last fiscal, the earned a net profit of Rs 142.58 crore from a total income of Rs 2357.60 crore.

Against the RBI-prescribed limit of 70 per cent of the investments to be made marked to market, 80.46 per cent of the bank's investments are marked to market. Also 89.3 per cent of its advances constitute standard assets.

Times Bank, which closed recently with an oversubscription of over sixtimes, was also priced at Rs 10. The issue is likely to be listed in the next few days.